In 2009, Bitcoin became the first proof-of-work (PoW) cryptocurrency. At first, you could "mine" for bitcoins using just a home computer. As technology advanced to keep up with the rampant demand, cryptocurrency miningbecame a reality for many on their home computers. Over the years, the mining process and its efficiency have improved with the use of better hardware. Graphics Processing Units (GPUs) have been used in the mining process for years, simply because they were more efficient than their immediate counterparts.
Today, GPUs, too, have been rendered obsolete in crypto mining by highly-efficient application-specific integrated circuits (ASICs). For certain tokens, GPUs are still an efficient way to mine. Read on to learn more about how GPUs have been used in the blockchain space.
Key Takeaways
- A GPU, or graphics processing unit, is responsible for the digital rendering in a computer system.
- Due to a GPU's power potential vs. a CPU, or central processing unit, they have become more useful in blockchain mining due to their speed and efficiency.
- The blistering pace of technological advancement will determine if GPUs will remain the standard for high-level cryptocurrency mining.
How Do GPUs Helpin Cryptocurrency Mining?
Cryptocurrency mining was originally performed using CPUs, or Central Processing Units. However, its limited processing speed and high power consumption led to limited output, rendering the CPU-based mining process inefficient.
Enter GPU-based mining, which offered multiple benefits over the use of CPUs. A standard GPU, like a Radeon HD 5970, clocked processing speeds of executing 3,200 32-bit instructions per clock, which was 800 times more than the speed of a CPU that executed only 4 32-bit instructions per clock.
It is this property of the GPU that makes them suitable and better for cryptocurrency mining, as the mining process requires higher efficiency in performing similar kinds of repetitive computations. The mining device continuously tries to decode the different hashes repeatedly with only one digit changing in each attempt.
GPUs are also equipped with a large number of Arithmetic Logic Units (ALU), which are responsible for performing mathematical computations. Courtesy of these ALUs, the GPU is capable of performing more calculations, leading to improved output for the crypto mining process.
GPUs are devised to do better in performing similar and repetitive work than the performingof diversified multi-tasking functions, like those of the CPU.
GPU vs. CPU
Each standard computer is equipped with a Central Processing Unit (CPU), which is a processing device that acts as a master of the whole computer system. It performs the controlling functions for the whole computer based on the logic of the operating system and the software installed on the computer. Typical functions—like save this file as MS Word, print this spreadsheet, or run that video in VLC Media Player—are controlled by the CPU.
A GPU is another processing device, but one that works solely for handling display functions. It is the part of acomputer that is responsible for its video rendering system.
The typical function of a GPU is to perform and control the rendering of visual effects and 3D-graphics sothe CPU doesn't have to get involved in minute details of video-rendering services. It takes care of graphics-intensive tasks such as video editing, gaming display, and decoding and rendering of 3D videos and animations.
To draw an analogy, the master (CPU) managing the whole organization (the computer system) has a dedicated employee (GPU) to take care of a specialized department (video-rendering functions).
This setup allows the CPU to perform the high-level diversified tasks for managing the whole computer, while the GPU is in charge of the video functionsof which it is a specialist. A CPU will perform the function to open a video file in Windows Media Player, but once the file opens, the GPU takes over the task of displaying it properly.
How Does Bitcoin Mining Work?
Bitcoin mining is the way that new coins are created, and this process also confirms and protects the transactions on the blockchain itself. Mining uses a process called proof-of-work (PoW). Simply put, computers compete to solve an arbitrary but difficult puzzle. The first to solve the puzzle through trial-and-error effort succeeds and the process begins again. For more on how Bitcoin mining works, read on here.
Can You Still Mine Crypto With GPUs?
There are certain ASIC-resistant tokens that can still be mined with GPUs. For other PoW tokens ASICs today far outperform GPUs, rendering them basically obsolete. Today's latest ASIC miners can produce almost 200 TH/s at only 27.5 joules per terahash.
Who Produces GPUs That Can Be Use to Mine Crypto?
The two largest makers of GPUs are Nvidia (NVDA) and AMD (AMD).
The Bottom Line
GPUs have been around for years, but face competition from improved, new-age devices. They include the Field Programmable Gate Arrays (FPGAs) and the Application Specific Integrated Circuits (ASICs), which scorebetter than both CPUs and GPUs at performing hash calculations, an essential function toblockchainmanagement in cryptocurrency.
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
FAQs
Answer: There is no minimum or limit to the number of GPUs you can use when mining, and can even start with 1. However, if you are into a serious mining business, a rig of 6 GPUs is recommended.
How many GPUs does a crypto miner use? ›
Answer: There is no minimum or limit to the number of GPUs you can use when mining, and can even start with 1. However, if you are into a serious mining business, a rig of 6 GPUs is recommended.
How GPU is used in crypto mining? ›
GPU mining is a crypto mining process that uses specialized graphics card cores to solve crypto puzzles and verify transaction blocks. Miners prefer GPUs as they can divide and process similar, repetitive, yet resource-intensive tasks faster with multiple cores.
Does crypto mining wear out GPU? ›
Mining Bitcoin can potentially damage your GPU or PC if you don't take the proper precautions. It involves solving complex mathematical problems using your computer's processing power. This generates a lot of heat, which can cause your GPU or PC to overheat if it's not properly cooled.
What percent of GPUs are used for mining? ›
Miners might have consumed about 10% of discrete GPU supply in the last 1.5 years.
Is GPU mining still profitable 2023? ›
Cryptocurrency mining is still profitable in 2023, but it may not be as rewarding as in the past. That's accurate for a variety of factors, including the fact that cryptocurrency prices were significantly lower than their peaks for the majority of 2022 and into early 2023.
Is GPU mining Dead Forever? ›
Since Ethereum Merge in September 2022, GPU mining has become largely obsolete, as alternative GPU-friendly PoW blockchains simply can't accommodate this much computing power. Whether GPUs will ever claw back their lost share of the crypto mining market remains to be seen.
What is the most profitable GPU for mining? ›
- NVIDIA GeForce RTX 3060 Ti. Best overall GPU for crypto mining. ...
- AMD Radeon RX 6700 XT. Best runner-up GPU for crypto mining. ...
- NVIDIA GeForce RTX 3090. Best GPU for mining performance. ...
- NVIDIA GeForce RTX 2070. Best GPU for value crypto mining. ...
- AMD Radeon RX 580. Best budget AMD GPU for crypto mining. ...
- NVIDIA GeForce GTX 1660 SUPER.
GPU mining itself isn't a danger to your PC—it's the mileage. Since most GPUs rely on attached or auxiliary fans, these parts can degrade faster during periods of sustained use. To prevent damage to your card, you'll need to clean them often.
Is crypto Mining profitable? ›
Here's the short answer: Bitcoin mining can be profitable if you invest in the right tools and join a bitcoin mining pool. That said, there are a lot of variables, and a high profit isn't guaranteed. Mining isn't for everyone.
A GPU is designed to give the best performance for at least 5 years and last for up to 10 years if preserved properly and still works properly after that.
How long will a GPU last mining? ›
Whether a GPU spends its life mining, rendering, or some other load doesn't affect the rate of failure, however. With a replacement of the thermal solution and software maintenance a mined GPU will run as fast as the day it was manufactured five years later.
What is the life expectancy of GPU mining? ›
If you are a cryptocurrency miner, then your GPU might last 2 to 3 years. If you are thinking of buying a 2nd hand GPU from a miner then be aware. Although he might say that it's been used for 2 years, its (GPU) lifespan is almost over due to the mining effect.
How much can 1 GPU make mining? ›
If you own one of the latest generation graphics cards, such as Nvidia's RTX 3060 Ti or 3080, there's significant money to be made. According to WhatToMine, a website that keeps track of cryptocurrency mining profitability, you can expect to earn as much as $7 per day with an RTX 3080.
Why is GPU mining ending? ›
GPUs are no longer useful for mining
As Ethereum is shifting from its proof-of-work to proof-of-stake mechanism, many miners aren't happy, forcing them to find an alternative. As reported by FX Empire, ETH announced that it would shift to POS between the third and fourth quarters of this year.
Why is Ethereum mining ending? ›
Since Ethereum has switched to a proof-of-stake model, mining Ether will no longer be necessary. Due to this, mining machinery will become obsolete, leaving miners with fewer options.
How much does a mining rig make a day? ›
Most Bitcoin mining rigs make at least 2000 USD every day on average. Some can make up to as high as 5000 USD daily. We recommend buying more efficient and robust mining equipment to maximize your daily income from Bitcoin mining.
How much can you make a month mining Bitcoin? ›
Crypto Mining Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $100,500 | $8,375 |
| 75th Percentile | $77,500 | $6,458 |
| Average | $64,161 | $5,346 |
| 25th Percentile | $48,000 | $4,000 |
How long does it take to mine one Bitcoin? It takes around 10 minutes to mine just one Bitcoin, though this is with ideal hardware and software, which isn't always affordable and only a few users can boast the luxury of. More commonly and reasonably, most users can mine a Bitcoin in 30 days.
Is crypto mining worth it 2023? ›
Bitcoin mining is still profitable in 2023. Bitcoin miners are currently mining around $20 million worth of Bitcoin per day. That's $600 million per month.
Is bitcoin mining legal? According to TheStreet, reporting on a November 2021 Law Library of Congress report, bitcoin mining is banned in various countries, such as Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and more. However, it is legal in the US, and most countries, but not all US states allow the same.
Can I mine crypto on my laptop? ›
So, can you mine cryptocurrency on a laptop? Yes, you can, but you have to keep a couple of things in mind. Firstly, don't expect any noticeable income from mining on a laptop. Secondly, laptops, by design, are not suitable for crypto mining, and prolonged mining will cause damage to the device.
What is the most affordable GPU for mining? ›
The NVIDIA GeForce RTX 3060 TI is the best all-around card, mining quickly at a cost-effective MSRP. The NVIDIA GeForce GTX 1660 SUPER is the best budget card, available in many sectors for cheap. And the NVIDIA GeForce RTC 2070 is just a solid card at a low price.
How many graphics cards do I need for mining? ›
We recommend using Gigabyte GeForce GTX 1070 or Radeon RX Vega 64 for ETH mining. Depending on the motherboard, you can have anywhere between one and eight graphics cards in your mining rig. Motherboard — This is what connects all of the components together and the mining rig is built onto the motherboard.
Can you mine crypto on a phone? ›
Solo-mining of cryptocurrencies is not a viable concept if you want to use your phone or tablet for it. However, you can use a cloud service by renting computing power. This can come with a mobile app that provides a convenient personal account interface on the cloud service.
Does crypto mining use a lot of electricity? ›
Cryptocurrency has an energy consumption problem. Bitcoin alone is estimated to consume 127 terawatt-hours (TWh) a year — more than many countries, including Norway.
Is it OK to buy mining GPU? ›
So, at least according to LTT's testing, it appears that buying a second-hand mining GPU isn't as dangerous and dodgy a proposition as it might appear to be. Still, make sure wherever you're getting the card from has a return policy in case it arrives with performance issues.
Does crypto mining damage your computer? ›
A GPU could get damaged while mining if it was running above 80°C or even 90°C for a longer period of time. This will indeed shorten the GPU lifetime. But there is a simple and effective way to lower the GPU temperature without affecting the performance.
What is the easiest coin to mine? ›
Monero (XMR) is one of the easiest cryptocurrencies to mine using a home computer. Monero is a privacy-focused crypto based on the CryptoNote protocol and utilizes the RandomX hash function to create increasingly complicated mathematical equations.
How much electricity does it cost to mine a Bitcoin? ›
Electricity cost per Bitcoin = Time required to mine one Bitcoin * Energy consumption * Cost = ~7.7 years * 365 days * 24 hours * 3,032 W * $0.05 / 1,000 = ~$10,200.
Five-year projections for Bitcoin miner returns
Any additional BTC that hardware brings to its owner is an additional gain. For instance, if a Bitcoin-denominated investment of 1 BTC in mining rigs returns 0.9 BTC at the end of five years, buying BTC is preferable to mining.
Is mining on a laptop bad? ›
But mining is a much more strenuous activity. You need to factor in the fact that mining is usually a 24/7 process, and you're putting a lot of unneeded stress on your laptop. Not only can you damage your GPU in the long run, but you can also wear out the teeny tiny fans, which can further complicate things.
How long does a crypto miner last? ›
A well maintained ASIC typically lasts 3-5 years, although longer is not unheard of.
How long will 8gb cards be good for mining? ›
That's projected for 2026.
Will crypto mining ever end? ›
Bitcoin mining fees will disappear when the Bitcoin supply reaches 21 million. After that, miners will likely earn income only from transaction processing fees rather than a combination of block rewards and transaction fees.
Should GPU be at 100% while mining? ›
It is built to run at 100% utilization,so it should be safe,unless you are pushing the limits too much. Even mining GPUs last years spending all the time at 100%. But running at 100% definitely affect its life span, the transisitor wear out on usage. Still it will run for years unless you are unfortunate enough.
How long does a mining computer last? ›
Generally speaking, most mining hardware can last anywhere from one to three years before it needs to be replaced. What is a mining pool, and how does it work?
What is most profitable crypto to mine? ›
This list contains the name of the top most profitable crypto assets and the reasons to invest in them.
- Bitcoin.
- Ethereum.
- Ravencoin.
- LiteCoin.
- ECOS.
- Vertcoin.
- ZCash.
0.52 USD / Day
*Please note that values are only estimates based on past performance - real values can be lower or higher. Exchange rate of 1 BTC = 30131.70 USD was used.
What are the odds of solo mining? ›
Based on this, the odds of this solo miner being the first to solve the block with a valid hash are one in 26.9 million. Statistically, that means that if the same circ*mstances were repeated infinite times, the solo miner would add the block 0.000000037% of the time, on average.
According to hardware manufacturer Palit (as per a PC Gamer report), a mining GPU will lose around 10 percent of its performance each year, while there are more than enough images detailing how mangled crypto mining hardware becomes over time.
What is the most profitable mining coin after Ethereum? ›
In summary, the best option miners will have to stay profitable after Ethereum is to use NiceHash and its automatic algorithm switching. This ensures that miners are always mining the most profitable algorithm all the time.
What will replace ETH mining? ›
Ethereum, the second-largest cryptocurrency, is moving over to proof of stake in a long-anticipated transition known as the merge. This will eliminate the need for miners, as validators will replace them in keeping the network secure and process transactions. It is hoped the move will make the network greener.
Is Ethereum mining dying? ›
Ethereum completed its long-awaited move to proof of stake today, leaving mining in the past. After years of planning, Ethereum's much-anticipated switch from proof-of-work to proof-of-stake took place today.
Is Ethereum moving away from GPU mining? ›
Ethereum miners will no longer be competing with PC gamers to acquire graphics cards. Ethereum mining was the primary cause of the world's GPU supply issues over the past few years, and with Ethereum's move away from Proof of Work, mining related demand for graphics cards has evaporated.
How long does it take to mine 1 Bitcoin with one GPU? ›
It takes around 10 minutes to mine just one Bitcoin, though this is with ideal hardware and software, which isn't always affordable and only a few users can boast the luxury of. More commonly and reasonably, most users can mine a Bitcoin in 30 days.
How much GPU is required for Ethereum mining? ›
Ethereum mining needs a minimum runtime memory of 4GB per GPU to perform optimally. To calculate the RAM, you need to install it accordingly. Also, the GPU's RAM must be at least 6GB.
How long can GPU last crypto mining? ›
That's why cryptomining can daunt newcomers—rumors about hardware degradation have made them fearful of killing their darlings. Lucky for them, mining doesn't degrade your GPU any more than a lifetime of l33t gaming. If you're totally new to blockchain, get good with our Gamer's Guide to Blockchain and Crypto.
How many GPUs needed to mine Bitcoin Tarkov? ›
Can be produced in the Bitcoin farm every 40 hours 17 minutes, when having one Graphics card installed. Installing more Graphics cards in the Bitcoin farm speeds up production, to a minimum time of 13 hours 20 minutes when all 50 Graphics cards are installed.
What is the most profitable coin to mine on a single GPU? ›
Litecoin: Litecoin (LTC), has a broad reach and reliable functionality. It appears on many lists as one of the top 10 profitable coins, and for good cause. LTC mining uses the Scrypt algorithm and is one of the most popular and successful currencies to be generated with a GPU.
Past earnings of your setup on NiceHash
| 1 Day | 1 Week |
|---|
| 💵 Income | 0.00001984 BTC 0.62 USD | 0.00013999 BTC 4.34 USD |
| ⚡ El. costs | 0.00000000 BTC 0.00 USD | 0.00000000 BTC 0.00 USD |
| 💰 Profit | 0.00001984 BTC 0.62 USD | 0.00013999 BTC 4.34 USD |
Crypto Mining Salary
| Annual Salary | Hourly Wage |
|---|
| Top Earners | $100,500 | $48 |
| 75th Percentile | $77,500 | $37 |
| Average | $64,161 | $31 |
| 25th Percentile | $48,000 | $23 |
For mining ethereum, we recommend using an Intel Celeron or Intel i3 processor. RAM — Higher RAM does not mean that you get a better mining performance, so we recommend using anywhere between 4GB and 16GB of RAM.
Is Ethereum GPU mining profitable? ›
Despite the risks, mining Ethereum can be profitable. If the price of Ethereum goes up, or if the difficulty of mining goes down, you could make a lot of money. Just make sure to do your research and invest in a good mining rig.
What is the minimum GPU required for mining? ›
Each mining algorithm have different hardware requirements: Ethash A modern Graphic Card (GPU) with at least 6GB of VRAM (Graphic card memory, not to be confused with the system's RAM memory), multi-GPU systems are supported, as long as all GPUs meet the minimum memory requirement.
Why is GPU mining going away? ›
GPUs are no longer useful for mining
As Ethereum is shifting from its proof-of-work to proof-of-stake mechanism, many miners aren't happy, forcing them to find an alternative. As reported by FX Empire, ETH announced that it would shift to POS between the third and fourth quarters of this year.
Is crypto mining worth it? ›
Here's the short answer: Bitcoin mining can be profitable if you invest in the right tools and join a bitcoin mining pool. That said, there are a lot of variables, and a high profit isn't guaranteed. Mining isn't for everyone.
How many computers are needed for crypto mining? ›
The resources required for mining Bitcoin include: At least one specialized computer (called an Application-specific Integrated Circuit or ASIC miner) designed to compete for and support a particular cryptocurrency. A reliable and inexpensive energy supply. A dependable internet connection.
How much Bitcoin can you mine in a day with a 3080? ›
Past earnings of your setup on NiceHash
| 1 Day | 1 Week |
|---|
| 💵 Income | 0.00001828 BTC 0.57 USD | 0.00012444 BTC 3.86 USD |
| ⚡ El. costs | 0.00000000 BTC 0.00 USD | 0.00000000 BTC 0.00 USD |
| 💰 Profit | 0.00001828 BTC 0.57 USD | 0.00012444 BTC 3.86 USD |
Yes, it is possible to mine Bitcoin with a single GPU, but the profitability of this approach will depend on several factors, including the processing power of your GPU, the current difficulty level of the Bitcoin network, and the cost of electricity in your area.
